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Accounting Policies of Enterprise International Ltd. Company

Mar 31, 2014

A. Use of estimates: The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. Tangible fixed assets: Fixed assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assetsforthe period uptothe completion of installation of such assets.

c. Depreciation/Amortization: Depreciation on fixed assets is provided on pro-rata basis to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

d. Impairment of assets: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and netselling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as expenses in the Statement of Profit and Loss in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

e.lnventories:

lnventories are value dat lower of costornet realizable value.

f. Revenue recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured. Revenue from sale of goods is recognised when all the significant risks & rewards of ownership of the goods have been passed to the recognized buyers, usually on delivery of the goods. Dividend Income is recognised when right to receive is established.

Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

g. Investments: Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments /non- current investments. Long term investments are carried at cost unless there is diminution (otherthan temporary) in the value of investments.

h. Employee benefits: Short-term employees'' benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered.

i. Foreign exchange transactions: Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction. Exchange differences arising on foreign currency transactions are recognized in the statement of profit and loss. Monetary items denominated in foreign currencies at the yearend are restated atyearend rates.

j. Contingencies: Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recognized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

k. Taxation: The current charges for Income Taxes are calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profit offered for Income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

I. Duty drawback: These are being accounted for as and when actually received.

m. Earnings per share: The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the period by the weighted average numberof equity shares outstanding during the period.

n. Operating Leases:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating lease Operating lease receipts are recognized as an income in the statement of Profit & Loss as per the lease terms.


Mar 31, 2013

A. Use of estimates: The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. Tangible fixed assets: Fixed assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assets for the period up to the completion of installation of such assets.

c. Depreciation/Amortization: Depreciation on fixed assets is provided on pro-rata basis to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

d. Impairment of assets: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as expenses in the Statement of Profit and Loss in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

e. Inventories: Inventories are valued at lower of cost or net realizable value.

f. Revenue recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably mea- sured. Revenue from sale of goods is recognised when all the significant risks & rewards of ownership of the goods have been passed to the recognized buyers, usually on delivery of the goods. Dividend Income is recognised when right to receive is established. Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

g. Investments: Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments/non-current investments. Long term investments are carried at cost unless there is diminution (other than temporary) in the value of investments.

h. Employee benefits: Short-term employees'' benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered.

i. Foreign exchange transactions: Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction. Exchange differences arising on foreign currency transactions are recognized in the statement of profit and loss. Monetary items denominated in foreign currencies at the year end are restated at year end rates.

i. Contingencies: Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recog- nized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

k. Taxation: The current charges for Income Taxes are calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differ- ences that result between the profit offered for Income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recog- nized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

I. Duty drawback: These are being accounted for as and when actually received.

m. Earnings per share: The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the period.

n. Operating Leases :

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating lease.

Operating lease receipts are recognized as an income in the statement of Profit & Loss as per the lease terms.

In accordance with the requirements under the Accounting Standard (AS-22) relating to deferred tax, the deferred tax liability at the end of the year works out to be Rs. 35,828(as on 01.04.2012 Rs.1,35,217). As a measure of prudence and as recommended under AS-22 the same has been currently recognized in the accounts.


Mar 31, 2010

A) Basis of preparation of Financial Statements :

The financial statements are prepared under the historical cost convention on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) in India, and materially comply with the mandatory accounting standards issued by the Central Government and the provisions of the Companies Act, 1956 (the Act).

b) Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period reported. Actual results could differ from these estimates. Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales price or present value as determined above. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonable estimated. Actual results could differ from those estimates.

c) Revenue recognition :

The Company recognises sales at the point of despatch of goods to the customers.

d) Fixed Assets and capital work in progress :

Fixed Assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assets for the period up to the completion of installation of such assets.

e) Depreciation :

Depreciation on fixed assets is provided pro-rata to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

f) Impairment :

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognised as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired The impairment loss recognized in prior accounting period is reserved if there has been an improvement in recoverable amount.

g) Inventories :

Inventories are valued at lower of cost or net realisable value.

h) Foreign Currency Transactions and translations :

Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction Exchange differences arising on foreign currency transactions are recognised in the profit and loss account.

i) Duty Draw Back :

These are being accounted for as and when actually received.

j) Investments :

Long term Investments are stated at cost and any decline other than temporary, in the value of such investments is charged to the Profit and Loss Account.

k) Employee benefits :

(i) Short-term employee benefits are charged off at the undiscounted amount in the year in which the related services are rendered.

(li) No post employment and other long-term employee benefits are payable by the company.

l) Contingent Liability :

i) Contingent liabilities if any are disclosed by way of notes to the Accounts.

ii) Demands raised by the Custom Authorities disputed by the Company Rs.26,27,309/- (Previous year Rs.26,27,309/-)

iii) Bank Guarantee given by a scheduled bank to a third party Rs.41,20,256/- (P. Y. Rs.32,28,756/-)

m) Income taxes, Deferred Tax and Fringe Benefits Tax :

The current charge for Income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences that result between the profit offered for income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substaintively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date.

Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Other deferred tax assets are recognised only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised and are reassessed for the appropriateness of their respective carrying values at each balance sheet date.

n) Earnings per share :

The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the period.

 
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